Finance Experts: Mexico’s Economy is in Recovery Mode
Mexico’s economy will continue to recover during the rest of this year, but the situation in international markets poses risks, the Financial System Stability Council, or CESF, said.
Foreign demand and the federal government’s stimulus policies should help bolster the recovery in the wake of first-quarter gross domestic product (GDP) growth that came in lower than expected, the CESF said in a statement.
Demand in developed countries has given a boost to Mexico’s economy, but “signs of relative weakness persist,” the CESF, whose members are the heads of Mexico’s main economic organizations, said.
Monetary policy in the main developed economies is likely to experience “gradual” normalization, the CESF said.
Investors’ outlook for monetary policy “has contributed to low volatility” in the financial markets and “encouraged capital flows to return to emerging economies,” the council said, referring to the low interest policies adopted by many central banks around the world.
Mexico’s GDP grew 1.8 percent in the first quarter, compared to the same period in 2013, a figure that was well below expectations.
The government has revised its economic growth forecast for this year downward from 3.9 percent to 2.7 percent.
Mexico’s economy grew just 1.1 percent in 2013 due to a strong deceleration in the first half of the year.
Published in Latino Daily News
Source: http://www.hispanicallyspeakingnews.com/latino-daily-news/details/finance-experts-mexicos-economy-is-in-recovery-mode/30363#When:00:03:08Z
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